【TOP 1 Morning】Gold end above $1,900 at highest in a week as dollar slide, oil settle at 2-week low
Gold climbs to 1-week high on dollar slide, and oil prices settle at 2-week low as grim coronavirus milestone highlights demand fears.

Yesterday Market Review
Gold
Gold futures climbed above $1,900 an ounce Tuesday to score their highest finish in a week as a decline in the U.S. dollar continued to provide support for the dollar-denominated precious metal.
The spot gold closed at $1896.82 per ounce, volatility within the day is $1875.38-$1898.99.
“The dollar has emerged as the single biggest influence on gold recently, and the fact that the greenback fell from two-month highs offered gold a tailwind,” analysts at Sevens Report Research wrote.
“Gold prices have formed a near-term support zone between $1,850 and $1,860 that should allow futures to recover the $1,900 mark in the sessions ahead. But the risk of a continued pullback toward $1,800 still exists, especially if there is another spike higher in the dollar index,” they said.
Analysts say that demand from exchange-traded funds, which must buy gold to mimic the performance of the commodity, also have been a key driver of price gains.
“From a fundamental point of view, despite the recent slowdown of the price, ETF demand remains stellar, while central banks are still printing money in order to mitigate the impact of the economic crisis generated by COVID, a scenario that is likely to last for at least all of 2021,” wrote Carlo Alberto De Casa, chief analyst at ActivTrades, in a daily note.
The silver closed at $24.150, volatility within the day is $23.361-$24.396.
Forex
On Tuesday, the dollar dropped from last week’s two-month highs, as investors capitalized on recent gains in the greenback and cautiously looked ahead to the first debate between U.S. President Donald Trump and Democratic challenger Joe Biden.
U.S. dollar closed at 93.922, volatility within the day is 93.865 - 93.938.
The greenback also added to losses, as investors felt a little more confident getting out of the safe-haven currency after data showed U.S. consumer confidence rebounded more than expected in September, as households’ views of the labor market improved.
The EUR/USD rose by 0.67% to 1.1744, which is the largest increase since August 28; the GBP/USD rose by 0.23% to 1.2863.
European Central Bank policymakers are increasingly divided over how to steer Europe’s economy through the second wave of COVID-19 infections.
The USD/JPY rose 0.15% to 105.66; the AUD/USD rose 0.83% to 0.7130; the NZD/USD rose 0.52% to 0.6588; the USD/CAD rose 0.13% to 1.3388.
Stock Market
Stocks slipped on Tuesday but closed off their lows of the session.
The Dow Jones Industrial Average fell 131.40 points, or 0.48%, to close at 27,452.66. The S&P 500 fell 16.13 points, or 0.48%, to end at 3,335.47 while the Nasdaq Composite fell 32.28 points or 0.29% at 11,085.25.
Apple (NASDAQ: AAPL) fell 0.76%; Microsoft (NASDAQ: MSFT) fell 1.04%; Amazon (NASDAQ: AMZN) fell 0.92%; Alphabet (NASDAQ: GOOGL) rose 0.50%; Facebook (NASDAQ: FB) rose 1.94%.
JPMorgan, the bank’s stock ticked 1% lower on the news JPMorgan is set to pay $920 million to resolve probes from three government agencies over its role in the alleged manipulation of metal and Treasury markets.
Disney (NYSE: DIS) closed down 0.33%. Disney is laying off 28,000 employees as pandemic hammers its theme parks.
Deutsche Bank reiterated its buy rating on shares of Nio on Tuesday, saying the electric vehicle company could be the “next iconic auto brand.” The stock has gained 367% this year, and Deutsche Bank believes there’s another 27% upside ahead. Nio was slightly lower during premarket trading.
JPMorgan is advising investors to add cyclicality within areas of business that are seeing “structural growth,” such as digital transformation and health-care innovation, as well environmentally driven trends.
On Tuesday, European stock markets closed low, among which banks, energy, and insurance stocks fell more.
Crude Oil
Oil futures fell sharply on Tuesday, sending the U.S. and global benchmark crude prices to their lowest finish in two weeks.
West Texas Intermediate crude settled at $39.125, volatility within the day is $38.515-$40.783. International benchmark Brent crude closed at $41.337, volatility within the day is $40.869-$42.996.
Investors worried about rising cases of COVID-19 throughout the globe, a development that may harm appetite for oil and other energy assets in the longer-term.
The global death toll from the coronavirus pandemic has surpassed one million globally, while the U.S. accounts for more than a fifth of the nearly 33.4 million cases, with more than 200,000 deaths.
“For the market, it is a reminder that the unprecedented challenges created by COVID-19 and efforts to limit the spread offer little in the way of quick solutions, ” said Robbie Fraser, senior commodity analyst at Schneider Electric a daily note. The pandemic also represents “a significant and ongoing downside risk as the crude market looks to continue a demand rebound.”
Traders in the oil market have also been watching developments tied to conflict in southwestern Asia. Armenian and Azerbaijani forces have been fighting over the separatist region of Nagorno-Karabakh.
Focus Today
14:00 (GMT+8): Retail Sales YoY (AUG), Previous:-0.9%, Forecast:0.4%;
14:00 (GMT+8): UK GDP Growth Rate YoY Final (Q2), Previous:-21.7%, Forecast:-21.7%;
14:45 (GMT+8): France Inflation Rate YoY Prel (SEP), Previous:0.2%, Forecast:0.2%;
20:30 (GMT+8): U.S. ADP Employment Change (SEP), Previous:428K, Forecast: 648K;
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